Hewlett-Packard (HPQ)

In fiscal 2010, we expect to contribute approximately $820 million to our pension and post-retirement plan
funding. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as established by local government, funding and taxing
authorities. Funding for the years following 2010 would be based on the then current market conditions, actuarial estimates and plan funding status. See Note 16 to the Consolidated Financial
Statements in Item 8, which is incorporated herein by reference, for additional information on pension activity.

As
a result of our approved restructuring plans, we expect future cash expenditures of approximately $1.9 billion. We expect to make cash payments of approximately
$1.1 billion in fiscal 2010 and the majority of the remaining amount through 2012. See Note 8 to the Consolidated Financial Statements in Item 8, which is incorporated herein by
reference, for additional information on restructuring activities.

We previously disclosed in our Consolidated Financial Statements for the fiscal year ended October 31, 2008 that we expected to
contribute approximately $360 million to our non-U.S. pension plans and approximately $35 million to cover benefit payments to U.S. non-qualified plan participants in fiscal
2009. We also noted that we expected to pay approximately $70 million to cover benefit claims for our post-retirement benefit plans. As of April 30, 2009, we have made
approximately $319 million of contributions to non-U.S. pension plans, paid $20 million to cover benefit payments to U.S. non-qualified plan participants, and
paid $20 million to cover benefit claims under post-retirement benefit plans. We presently anticipate making additional contributions of approximately $115 million to our
non-U.S. pension plans and approximately $10 million to our U.S. non-qualified plan participants and expect to pay up to $35 million to cover benefit claims under
post-retirement benefit plans during the remainder of fiscal 2009. Our pension and other post-retirement benefit costs and obligations are dependent on various assumptions.
Differences between expected and actual returns on investments will be reflected
as unrecognized gains or losses, and such gains or losses will be amortized and recorded in future periods. Poor financial performance of asset markets in any year could lead to increased
contributions in certain countries and increased future pension plan expense. Asset gains or losses are determined at the measurement date and amortized over the remaining service life or life
expectancy of plan participants. Our next expected measurement date is October 31, 2009. At this time, it is not possible for us to accurately predict the future movements in the capital
markets or the related plan funding requirements, both of which will impact future pension expense. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum
contribution requirements, as established by local government and funding and taxing authorities. We expect to use contributions made to the post-retirement benefit plans primarily for the
payment of retiree health claims incurred during the fiscal year.

As
a result of our approved restructuring plans, we expect future cash expenditures associated with the plans to be approximately $2.2 billion. We expect to make cash payments of
approximately $1.4 billion within one year and the majority of the remaining amount through 2012. In addition, we continue to evaluate our businesses and current market conditions and we may
incur additional cash flow expenditures for future restructuring actions.

We previously disclosed in our Consolidated Financial Statements for the fiscal year ended October 31, 2008 that we expected to
contribute approximately $360 million to our non U.S. pension plans and approximately $35 million to cover benefit payments to U.S. non-qualified plan participants in fiscal
2009. We also noted that we expected to pay approximately $70 million to cover benefit claims for our post-retirement benefit plans. As of January 31, 2009, we have made
approximately $157 million of contributions to non-U.S. pension plans, paid $15 million to cover benefit payments to U.S. non-qualified plan participants, and
paid $12 million to cover benefit claims under post-retirement benefit plans. We presently anticipate making additional contributions of approximately $235 million to our non
U.S. pension plans and approximately $20 million to our U.S. non-qualified plan participants and expect to pay up to $55 million to cover benefit claims under
post-retirement benefit plans during the remainder of fiscal 2009. Our pension and other post-retirement benefit costs and obligations are dependent on various assumptions. Differences
between expected and actual returns on investments will be reflected as unrecognized gains or losses, and such gains or losses will be amortized and recorded in future periods. Poor financial
performance of asset markets in any year could lead to increased contributions in certain countries and increased future pension plan expense. Asset gains or losses are determined at the measurement
date and amortized over the remaining service life or life expectancy of plan participants. Our next expected measurement date is October 31, 2009. At this time, it is not possible for us to
accurately predict the future movements in the capital markets or the related plan funding requirements, both of, which will impact future pension expense. Our funding policy is to contribute cash to
our pension plans so that we meet at least the minimum contribution requirements, as established by local government and funding and taxing authorities. We expect to use contributions made to the
post-retirement benefit plans primarily for the payment of retiree health claims incurred during the fiscal year.

As
a result of our approved restructuring plans, we expect future cash expenditures of approximately $1.7 billion. We expect to make cash payments of approximately
$1.0 billion within one year and the majority of the remaining amount through 2012. In addition, we continue to evaluate our businesses and current market conditions and we may incur additional
cash flow expenditures for future restructuring actions.

During fiscal 2008, we made approximately $170 million of contributions to non-U.S. pension plans, paid
$6 million to cover benefit payments to U.S. non-qualified plan participants, and paid $50 million to cover benefit claims under post-retirement benefit plans. In
addition, we used $25 million of cash to fund the distribution and subsequent transfer of accrued pension benefits from the U.S. Excess Benefit Plan to the U.S. Executive Deferred Compensation
Plan for the terminated vested plan participants. In fiscal 2009, we expect to contribute approximately $360 million to our pension plans and approximately $35 million to cover benefit
payments to U.S. non-qualified plan participants. We also expect to pay approximately $70 million to cover benefit claims for our post-retirement benefit plans in fiscal
2009. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as established by local government, funding and taxing authorities.
We expect to use contributions made to the post-retirement benefit plans primarily for the payment of retiree health claims incurred during the fiscal year.

We
will make a significant cash payment associated with our fiscal 2008 bonus programs. We have implemented bonus programs that are designed to reward our employees upon achievement of
annual performance objectives. We calculate bonuses based on a formula, with performance relative to targets, year over year improvements and market conditions that are set at the beginning of each
fiscal year. Our Board of Directors approves the final bonus payments. We accrued and expensed this bonus, as it was earned, throughout fiscal 2008.

In
connection with the acquisition of EDS, we implemented a restructuring program to streamline our services business and to better align the structure and efficiency of that business
with the operating model that we have successfully implemented in recent years. The restructuring program will be implemented over the next four years and will include changes to our workforce as well
as cost savings from corporate overhead functions, such as real estate, IT and procurement. As part of the restructuring program, we expect to eliminate approximately 24,700 positions, with nearly
half of the eliminations occurring in the United States. As a result of our approved restructuring plans, we expect future cash expenditures of approximately $2.1 billion. We expect to make
cash payments of approximately $1.3 billion in fiscal 2009 and the majority of the remaining amount through 2012.

Funding Commitments

During fiscal 2008, we made approximately $170 million of contributions to non-U.S. pension plans, paid$6 million to cover benefit payments to U.S. non-qualified plan participants, and paid $50 million to cover benefit claims under post-retirement benefit plans. Inaddition, we used $25 million of cash to fund the distribution and subsequent transfer of accrued pension benefits from the U.S. Excess Benefit Plan to the U.S. Executive Deferred CompensationPlan for the terminated vested plan participants. In fiscal 2009, we expect to contribute approximately $360 million to our pension plans and approximately $35 million to cover benefitpayments to U.S. non-qualified plan participants. We also expect to pay approximately $70 million to cover benefit claims for our post-retirement benefit plans in fiscal2009. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as established by local government, funding and taxing authorities.We expect to use contributions made to the post-retirement benefit plans primarily for the payment of retiree health claims incurred during the fiscal year.

Wewill make a significant cash payment associated with our fiscal 2008 bonus programs. We have implemented bonus programs that are designed to reward our employees upon achievement ofannual performance objectives. We calculate bonuses based on a formula, with performance relative to targets, year over year improvements and market conditions that are set at the beginning of eachfiscal year. Our Board of Directors approves the final bonus payments. We accrued and expensed this bonus, as it was earned, throughout fiscal 2008.

Inconnection with the acquisition of EDS, we implemented a restructuring program to streamline our services business and to better align the structure and efficiency of that businesswith the operating model that we have successfully implemented in recent years. The restructuring program will be implemented over the next four years and will include changes to our workforce as wellas cost savings from corporate overhead functions, such as real estate, IT and procurement. As part of the restructuring program, we expect to eliminate approximately 24,700 positions, with nearlyhalf of the eliminations occurring in the United States. As a result of our approved restructuring plans, we expect future cash expenditures of approximately $2.1 billion. We expect to makecash payments of approximately $1.3 billion in fiscal 2009 and the majority of the remaining amount through 2012.

We previously disclosed in our Consolidated Financial Statements for the fiscal year ended October 31, 2007 that we expected to
contribute approximately $145 million to our pension plans and approximately $15 million to cover benefit payments to U.S. non-qualified plan participants in fiscal
2008. We also noted that we expected to pay approximately $80 million to cover benefit claims for our post-retirement benefit plans in fiscal 2008. As of July 31, 2008, we
have made approximately $80 million of contributions to non-U.S. pension plans, paid $3 million to cover benefit payments to U.S. non-qualified plan
participants, and paid $39 million to cover benefit claims under post-retirement benefit plans. We presently anticipate making additional contributions of between $20 million
and $30 million to our pension plans, of which approximately $4 million is for U.S. non-qualified plan participants, and expect to pay approximately $20 million
to cover benefit claims under post-retirement benefit plans during the remainder of fiscal 2008. Our funding policy is to contribute cash to our pension plans so that we meet at least the
minimum contribution requirements, as established by local government and funding and taxing authorities. We expect to use contributions made to the post-retirement benefit plans primarily
for the payment of retiree health claims incurred during the fiscal year.

As
a result of our approved restructuring plans, we expect future cash expenditures of approximately $122 million, which we recorded on our Consolidated Condensed Balance Sheet at
July 31, 2008. We expect to make cash payments of approximately $68 million within one year and the remaining amount through 2018.

We previously disclosed in our Consolidated Financial Statements for the fiscal year ended October 31, 2007 that we expected to contribute approximately
$145 million to our pension plans and

64

approximately
$15 million to cover benefit payments to U.S. non-qualified plan participants in fiscal 2008. We also noted that we expected to pay approximately $80 million to
cover benefit claims for our post-retirement benefit plans in fiscal 2008. As of April 30, 2008, we have made approximately $64 million of contributions to non-U.S. pension
plans, paid $2 million to cover benefit payments to U.S. non-qualified plan participants, and paid $30 million to cover benefit claims under post-retirement
benefit plans. We presently anticipate making additional contributions of between $45 million and $55 million to our pension plans, of which approximately $7 million is for U.S.
non-qualified plan participants, and expect to pay $40 million to cover benefit claims under post-retirement benefit plans during the remainder of fiscal 2008. Our
funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as established by local government and funding and taxing authorities. We
expect to use contributions made to the post-retirement benefit plans primarily for the payment of retiree health claims incurred during the fiscal year.

As
a result of our approved restructuring plans, we expect future cash expenditures of $130 million, which we recorded on our Consolidated Condensed Balance Sheet at
April 30, 2008. We expect to make cash payments of approximately $70 million within one year and the remaining amount through 2018.

We previously disclosed in our Consolidated Financial Statements for the year ended October 31, 2007 that we expected to contribute approximately
$145 million to our pension plans and approximately $15 million to cover benefit payments to U.S. non-qualified plan participants. We also expected to pay approximately
$80 million to cover benefit claims for our post-retirement benefit plans in fiscal 2008. As of January 31, 2008, we have made approximately $44 million of
contributions to non-U.S. pension plans, paid $2 million to cover benefit payments to U.S. non-qualified plan participants, and paid $15 million to cover benefit
claims under post-retirement benefit plans. We presently anticipate making additional contributions of between $70 million and $80 million to our pension plans, of which
approximately $12 million is for U.S. non-qualified plan participants, and expect to pay approximately $60 million to cover benefit claims under post-retirement benefit plans
during the remainder of fiscal 2008. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as established by local government
and funding and taxing authorities. We expect to use contributions made to the post-retirement benefit plans primarily for the payment of retiree health claims incurred during the fiscal
year.

59

As
a result of our approved restructuring plans, we expect future cash expenditures of $145 million, which we recorded on our Consolidated Condensed Balance Sheet at
January 31, 2008. We expect to make cash payments of approximately $95 million within one year and the remaining amount through 2018.

During fiscal 2007, we made approximately $133 million of contributions to non-U.S. pension plans, paid $16 million to cover benefit
payments to U.S. non-qualified plan participants, and paid $58 million to cover benefit claims under post-retirement benefit plans. In addition, we used
$108 million of cash to fund the distribution and subsequent transfer of accrued pension benefits from the U.S. Excess Benefit Plan to the U.S. Executive Deferred Compensation Plan for the
terminated vested plan participants. In fiscal 2008, we expect to contribute approximately $145 million to our pension plans and approximately $15 million to cover benefit payments to
U.S. non-qualified plan participants. We also expect to pay approximately $80 million to cover benefit claims for our post-retirement benefit plans in fiscal 2008. Our
funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as established by local government and funding and taxing authorities. We
expect to use contributions made to the post-retirement benefit plans primarily for the payment of retiree health claims incurred during the fiscal year.

In
conjunction with our February 2007 announcement to modify our U.S. defined benefit pension plan and our Pre-2003 Retiree Medical Program, we offered eligible affected
employees an option to participate in the 2007 EER. We funded the cash expenditures associated with the 2007 EER primarily by using available U.S. pension plan assets. We made no incremental pension
contributions to the pension plan stemming from the 2007 EER.

67

We
have implemented bonus programs that are designed to reward our employees upon achievement of annual performance objectives. We calculate bonuses based on a formula, with targets that
are set at the beginning of each fiscal year. Our Board of Directors approves both the formula and the targets.

In
fiscal 2007, we outperformed against our targets, which will result in a significant bonus payout during the first quarter of fiscal 2008 and a corresponding reduction of cash flow
from operations in that quarter. We accrued and expensed this bonus, as it was earned, throughout fiscal 2007.

As
a result of our approved restructuring plans, we expect future cash expenditures of $173 million, which we recorded on our Consolidated Balance Sheet at October 31, 2007. We
expect to make cash payments of approximately $123 million in fiscal 2008 and the majority of the remaining $50 million through 2014.

We previously disclosed in our Consolidated Financial Statements for the fiscal year ended October 31, 2006 that we expected to contribute approximately
$120 million to our pension plans, approximately $15 million to cover benefit payments to U.S. non-qualified plan participants and approximately $80 million to cover
benefit claims under our post-retirement benefit plans. As of July 31, 2007, we have made approximately $94 million of contributions to non-U.S. pension plans,
paid $16 million to cover benefit payments to U.S. non-qualified plan participants, and paid $41 million to cover benefit claims under post-retirement benefit
plans. We presently anticipate making additional contributions of between $20 million and $30 million to our pension plans and expect to pay $15 million to cover benefit claims
under post-retirement benefit plans during the remainder of fiscal 2007. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution
requirements, as established by local government and funding and taxing authorities. We expect to use contributions made to the post-retirement benefit plans primarily for the payment of
retiree health claims incurred during the fiscal year.

In
conjunction with our announcement to modify our U.S. defined benefit pension plan and our Pre-2003 Retiree Medical Program, we offered eligible affected employees an
option to participate in the 2007 EER. We funded the cash expenditures associated with the 2007 EER primarily by using

68

available
U.S. pension plan assets. No incremental pension contributions are expected to be made to the pension plan stemming from the 2007 EER.

We
expect to make additional cash outlays associated with our restructuring plans during fiscal 2007. As a result of our approved restructuring plans, we expect future cash expenditures
of $235 million, which is recorded on our Consolidated Condensed Balance Sheet at July 31, 2007. We expect to make cash payments of approximately $104 million during the remainder
of fiscal 2007 and the majority of the remaining $131 million through 2014.

We previously disclosed in our Consolidated Financial Statements for the fiscal year ended October 31, 2006 that we expected to contribute approximately
$120 million to our pension plans, approximately $15 million to cover benefit payments to U.S. non-qualified plan participants and approximately $80 million to cover
benefit claims under our post-retirement benefit plans. As of April 30, 2007, we have made approximately $66 million of contributions to non-U.S. pension plans,
paid $14 million to cover benefit payments to U.S. non-qualified plan participants, and paid $28 million to cover benefit claims under post-retirement benefit
plans. We presently anticipate making additional contributions of between $45 million and $65 million to our pension plans and expect to pay $40 million to cover benefit claims
under post-retirement benefit plans during the remainder of fiscal 2007. Our funding policy is to contribute cash to our pension plans so that we meet at least the

64

minimum
contribution requirements, as established by local government and funding and taxing authorities. We expect to use contributions made to the post-retirement benefit plans primarily
for the payment of retiree health claims incurred during the fiscal year.

In
conjunction with our announcement to modify our U.S. defined benefit pension plan and our Pre-2003 Retiree Medical Program, we offered eligible affected employees an
option to participate in the 2007 EER. We will fund the cash expenditures associated with the 2007 EER primarily by using available U.S. pension plan assets. No incremental pension contributions are
expected to be made to the pension plan stemming from the 2007 EER.

We
expect to make additional cash outlays associated with our restructuring plans during fiscal 2007. As a result of our approved restructuring plans, we expect future cash expenditures
of $314 million, which is recorded on our Consolidated Condensed Balance Sheet at April 30, 2007. We expect to make cash payments of approximately $185 million during the
remainder of fiscal 2007 and the majority of the remaining $129 million through 2014.

We previously disclosed in our Consolidated Financial
Statements for the year ended October 31, 2006 that we expected to
contribute approximately $120 million to our pension plans, approximately
$15 million to cover benefit payments to U.S. non-qualified plan
participants and approximately $80 million to cover benefit claims for our
post-retirement benefit plans. As of January 31, 2007, we have made
contributions of approximately $42 million and $13 million to
non-U.S. pension plans and U.S. non-qualified plan participants, respectively,
and paid $14 million to cover benefit claims for post-retirement benefit plans.
We presently anticipate making additional contributions of between
$60 million and $80 million to our pension plans and expect to pay
$58 million to cover benefit claims for post-retirement benefit plans
during the remainder of fiscal 2007. Our funding policy is to contribute cash
to our pension plans so that we meet at least the minimum contribution
requirements, as established by local government and funding and taxing
authorities. We expect to use contributions made to the post-retirement benefit
plans primarily for the payment of retiree health claims incurred during the
fiscal year.

In conjunction with our
announcement to modify our U.S. defined benefit pension plan and our Pre-2003
Retiree Medical Program, we offered eligible employees an option to participate
in the 2007 EER. The severance payments
made to participants of the 2007 EER will be paid from assets in the pension
plan in which the employee participates. No incremental pension contributions
are expected to be made to the pension plan stemming from the 2007 EER
offering.

We expect to make significant cash outlays associated
with our restructuring plans during fiscal 2007. As a result of our approved
restructuring plans, we expect future cash expenditures of $397 million,
which is recorded on our Consolidated Condensed Balance Sheet at
January 31, 2007. We expect to make cash payments of approximately $295
million during the remainder of fiscal 2007 and the majority of the remaining $102 million
through 2014.

55

Since January 31,
2007, we completed the acquisitions of two companies and agreed to acquire a
third company. For details on those acqusitions, see Pending and Completed
Acquisitions under Note 5 to the Consolidated Condensed Financial
Statements in Item 1, which is incorporated herein by reference.

During fiscal 2006, we made approximately $270 million and $31 million of contributions to our pension plans and U.S. non-qualified plan
participants, respectively, and paid $67 million to cover benefit claims for post-retirement benefit plans. In fiscal 2007, we expect to contribute approximately $120 million
to our pension plans and approximately $15 million to cover benefit payments to U.S. non-qualified plan participants. We expect to pay approximately $80 million to cover
benefit claims for our post-retirement benefit plans. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as
established by local government and

66

funding
and taxing authorities. We expect to use contributions made to the post-retirement plans primarily for the payment of retiree health claims incurred during the fiscal year.

We
will make a significant cash payment associated with our fiscal 2006 bonus programs. The bonus programs are designed to reward our employees upon achievement of annual performance
objectives. Bonuses are calculated based on a formula, with targets that are set at the beginning of each fiscal year. Both the formula and the targets are approved by our Board of Directors.

In
fiscal 2006, we substantially outperformed against our targets which will result in a bonus payout during the first quarter of fiscal 2007 that will be significantly larger than prior
years, resulting in a corresponding reduction in cash flow from operations in that quarter. This bonus was accrued and expensed, as earned, throughout fiscal 2006.

Also
reducing our cash flow from operation in fiscal 2007 will be significant payments associated with our restructuring plans. As a result of our approved restructuring plans, we expect
future cash expenditures of approximately $640 million. The majority of this amount is recorded on our Consolidated Balance Sheet at October 31, 2006. We expect to make cash payments of
approximately $549 million in fiscal 2007 and the remaining amount of approximately $91 million over the next five fiscal years.

We previously disclosed in our Consolidated Financial Statements for the fiscal year ended October 31, 2005 that we expected to contribute approximately
$245 million to our pension plans, approximately $40 million to cover benefit payments to U.S. non-qualified plan participants and approximately $80 million to cover
benefit claims for our post-retirement benefit programs. As of July 31, 2006, we have made approximately $203 million and $30 million of contributions to
non-U.S. pension plans and U.S. non-qualified plan participants, respectively, and paid $38 million to cover benefit claims for post-retirement benefit
plans. We presently anticipate making additional contributions of between $50 million and $70 million to our qualified and non-qualified pension plans and expect to pay
$15 million to cover benefit claims for post-retirement plans during the remainder of fiscal 2006. Our funding policy is to contribute cash to our pension plans so that we meet at
least the minimum contribution requirements, as established by local government and funding and taxing authorities. We expect to use contributions made to the post-retirement plans
primarily for the payment of retiree health claims incurred during the fiscal year.

We
expect to make significant cash outlays associated with our restructuring plans during fiscal 2006. As a result of our approved restructuring plans, we expect future cash expenditures
of approximately $870 million. The majority of this amount is recorded on our Consolidated Condensed Balance Sheet at July 31, 2006. We intend to expense up to $70 million in
future periods as we incur the costs or we meet the requirements to record the costs as a liability. We expect to make cash payments of approximately $420 million during the remainder of fiscal
2006 and the remaining amount of approximately $450 million over the next five fiscal years.

We previously disclosed in our Consolidated Financial Statements for the year ended October 31, 2005 that we expected to contribute approximately
$245 million to our pension plans, approximately
$40 million to cover benefit payments to U.S. non-qualified plan participants and approximately $80 million to cover benefit claims for our post-retirement
benefit programs. As of April 30, 2006, we have made approximately $175 million and $28 million of contributions to non-U.S. pension plans and U.S.
non-qualified plan participants, respectively, and paid $25 million to cover benefit claims for post-retirement benefit plans. We presently anticipate making additional
contributions of between $80 million and $100 million to our qualified and non-qualified pension plans and expect to pay $40 million to cover benefit claims for
post-retirement plans during the remainder of fiscal 2006. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as
established by local government and funding and taxing authorities. We expect to use contributions made to the post-retirement plans primarily for the payment of retiree health claims
incurred during the fiscal year.

We
expect to make significant cash outlays associated with our restructuring plans during fiscal 2006. As a result of our approved restructuring plans, we expect future cash expenditures
of $950 million. The majority of this amount is recorded on our Consolidated Condensed Balance Sheet at April 30, 2006. We intend to expense $13 million in future periods as we
incur the costs or we meet the requirements to record the costs as a liability. We expect to make cash payments of approximately $400 million during the remainder of fiscal 2006 and the
remaining amount of $550 million over the next five fiscal years.

During fiscal 2006, we estimate that we will contribute approximately $245 million to our pension plans, approximately $40 million to cover benefit
payments to U.S. non-qualified plan participants and approximately $80 million to cover benefit claims for our post-retirement benefit programs. As of January 31,
2006, we have made approximately $144 million and $26 million of contributions to our

54

non-U.S. pension
plans and U.S. non-qualified plan participants, respectively, and have paid $15 million to cover benefit claims for post-retirement benefit
plans. Our funding policy is to contribute cash to our pension plans so that we meet at least the minimum contribution requirements, as established by local government and funding and taxing
authorities. We expect to use contributions made to the post-retirement plans primarily for the payment of retiree health claims incurred during the fiscal year.

We
expect to make significant cash outlays associated with our restructuring plans during fiscal 2006. As a result of our approved restructuring plans, we expect future cash expenditures
of $1.1 billion. The majority of this amount is recorded on our Consolidated Condensed Balance Sheet at January 31, 2006. We intend to expense $20 million in future periods as we
incur the costs or we meet the requirements to record the costs as a liability. We expect to make cash payments of approximately $900 million during the remainder of fiscal 2006 and approximately
$200 million over the next five fiscal years.

During fiscal 2005, we made contributions of approximately $1.7 billion to our pension plans. We paid approximately $60 million to cover claims cost
for the HP post-retirement benefit plans. In fiscal 2006, HP expects to contribute approximately $245 million to its pension plans and
approximately $40 million to cover benefit payments to U.S. non-qualified plan participants. HP expects to pay approximately $80 million to cover benefit claims for HP's
post-retirement benefit plans. HP's funding policy is to contribute cash to HP's pension plans so that HP meets at least the minimum contribution requirements, as established by local
government and funding and taxing authorities. HP expects to use contributions made to the post-retirement plans primarily for the payment of retiree health claims incurred during the
fiscal year.

We
expect to make significant cash outlays associated with the company's bonus and restructuring plans during fiscal 2006. As a result of our approved restructuring plans, we expect
future cash expenditures of approximately $1.2 billion, exclusive of approximately $400 million that will be funded through the pension plan assets for the costs associated with the
early retirement of 3,200 U.S. employees, primarily for employee severance and other employee benefits and facilities costs. Of this amount, we recorded $1.19 billion on our Consolidated
Balance Sheet at October 31, 2005, and we intend to expense $30 million in future periods as we incur the costs or we meet the requirements to record the costs as a liability. We expect
to make cash payments of approximately $1.0 billion in fiscal 2006 and approximately $200 million over the next five fiscal years.

We previously disclosed in our Consolidated Financial Statements for the year ended October 31, 2004 that we expect to contribute approximately
$850 million to our pension plans and $60 million to our post-retirement plans during fiscal 2005. As of July 31, 2005, we have made contributions of approximately $810 million
and $45 million to pension plans and post-retirement plans, respectively. HP presently anticipates making additional contributions of between $650 million and $950 million to our
pension plans and $15 million to our postretirement plans during the remainder of fiscal 2005. Our funding policy is to contribute cash to our pension plans so that we at least meet the minimum
contribution requirements, as established by local government funding and taxing authorities. In the current fiscal year, we will continue to contribute cash to our global pension plans in amounts
that are consistent with local funding requirements and tax considerations.

In
connection with our March 2002 acquisition of Indigo, HP issued approximately 53 million non-transferable contingent value rights ("CVRs") that entitle each holder to a one-time
contingent cash payment of up to $4.50 per CVR, based on the achievement of certain cumulative revenue results over a three-year period that ended on March 31, 2005. We have not incurred a
liability associated with the CVRs as of July 31, 2005, and, based on our estimate of such revenue results, we do not expect any material payments in the future.

We estimate that we will contribute a total of approximately $910 million to the pension and post-retirement plans during fiscal 2005, of which
we have already funded $815 million in the six months ended April 30, 2005. Our funding policy is to contribute cash to our pension plans so that we at least meet the minimum
contribution requirements, as established by local government
funding and taxing authorities. In the current fiscal year, we will continue to contribute cash to our global pension plans in amounts that are consistent with local funding requirements and tax
considerations.

In
connection with our March 2002 acquisition of Indigo, HP issued approximately 53 million non-transferable contingent value rights ("CVRs") that entitle each
holder to a one-time contingent cash payment of up to $4.50 per CVR, based on the achievement of certain cumulative revenue results over a three-year period that ended on
March 31, 2005. We have not incurred a liability associated with the CVRs as of April 30, 2005 and, based on our estimate of such revenue results, we do not expect any material payments
in the future.

We estimate that we will contribute a total of approximately $920 million to the pension and post-retirement plans during fiscal 2005, of which
we have already funded $555 million in the three months ended January 31, 2005. Our funding policy is to contribute cash to our pension plans so that we meet the minimum contribution
requirements, as established by local government funding and taxing authorities. In the current fiscal year, we will continue to contribute cash to our global pension plans in amounts that are
consistent with local funding requirements and tax considerations.

We
issued approximately 53 million non-transferable contingent value rights ("CVRs") in connection with our acquisition of Indigo, N.V. that entitle each holder to a
one-time contingent cash payment of up to $4.50 per CVR, based on the achievement of certain cumulative revenue results over a three-year period. The future cash
pay-out, if any, of the CVRs will be payable after a three-year period that began on April 1, 2002 and could result in a maximum obligation of $237 million. We
have not incurred a liability associated with CVRs as of January 31, 2005, and we do not expect any material cash payments in the future.